March quarter saw further increase in home sales

March quarter saw further increase in home sales

A "broadening recovery" is underway in Australia's housing market, according to the Housing Industry Association (HIA).

The organisation cited an increase in private new home sales during the first quarter as proof.

"Following quite a strong result in February 2014, total new home sales managed to post another, albeit slim, increase of 0.2 per cent in March this year," said HIA Economist Diwa Hopkins.

This led to a quarterly increase of 5.8 per cent, figures showed.

"It's encouraging to see that during the March 2014 quarter all of the surveyed states recorded increases in detached house sales," Ms Hopkins continued.

"Strong results occurred in the areas where a new housing recovery is just gaining traction."

For example, Ms Hopkins highlighted how detached house sales increased 20.8 per cent in Queensland during the March 2014 quarter. South Australia also showed gains, with sales rising 6.2 per cent.

New South Wales and Western Australia have also held on to healthy sales numbers, and the HIA believes there could be room for further growth in the states.

It should also be noted that the rise in home sales was felt only in the detached market. Multi-unit sales decreased 0.2 per cent during the March 2014 quarter.

With sales on the rise, prospective home buyers would be wise to seek out home loans sooner rather than later.

Home loan rates in Australia are currently hovering at historic lows, making it more affordable than ever for buyers to enter the market. This is likely one major factor in why home sales are on the rise.

However, as more homes leave the market, tighter inventory will lead to higher prices.

Therefore, those seeking to save on a home purchase may wish to get their home loan financing in order quickly.

Image credit: efffective.com

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